SEC delays Robinhood’s IPO due to concerns over its cryptocurrency business
The popular financial services mobile app Robinhood’s plans to go public on the US stock exchange are seeing slight delays thanks to the country’s regulators.
According to reports, the Securities and Exchange Commission (SEC) is delaying Robinhood’s plans to go public this year due to concerns about its cryptocurrency business. Bloomberg reported the news on Friday, citing anonymous sources familiar with the matter.
One of the knowledgeable sources revealed to the aforementioned medium that the company’s growing digital assets business “has attracted questions” from the regulatory agency. The source cited in the report also indicated that Robinhood has been in talks with the Commission in recent weeks.
Based in California, Robinhood offers trading in traditional market stocks, exchange traded funds and cryptocurrencies. The app initially launched trading with digital currencies in 2018 and has seen significant business growth since then.
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During this 2021, the company has been expanding its cryptocurrency division, adding staff and adding new trading pairs. It also registered an increase of 6 million users in the first quarter of the year. It currently allows the trading of seven cryptocurrencies: Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin, Bitcoin SV, Ethereum Classic.
Robinhood announced plans to launch an initial public offering (IPO) that would initially take place in June this year. However, he then postponed plans until July due to the holiday season. According to the Bloomberg source, the company’s plans could now be delayed until September-December, amid additional scrutiny from the SEC.